Swedish Krona (SEK)

What Is the Swedish Krona (SEK)?

SEK is the currency code for the Swedish krona, the currency for Sweden. The Swedish krona is comprised of 100 \u00f6re and is frequently given the symbol "kr."

The krona, and that means crown in Swedish, has been Sweden's currency beginning around 1873 and is likewise communicated by the symbol KR. It supplanted the Swedish riksdaler.

As of Aug. 12, 2021, one SEK is worth generally $0.12.

Figuring out the Swedish Krona (SEK)

The Swedish krona supplanted the riksdaler riksmynt at par in 1873, when the Scandinavian Monetary Union was framed.

The Scandinavian Monetary Union was a fixed exchange rate system — in light of the gold norm — among Sweden and Denmark. Norway joined the Union in 1875. While member countries actually had their own currencies, the Union guaranteed exchange rate stability. This Monetary Union went on until 1914.

Starting around 1992, the exchange rate has been permitted to float against different currencies, with the central bank interceding when important to settle the krona's value.

The most intensely traded currency pair including the SEK is the EUR/SEK, or the euro versus the krona.

Sweden is expected to join the eurozone, and embrace the euro, as part of the promotion treaty of 1995, albeit the majority of legislators and residents are not for taking on the euro. Thusly, there is no criticalness to surrender the krona, and starting around 2021, there are no plans to switch over.

Regardless of Sweden's relatively small economy, its knowledgeable and educated labor force and the way that it is home to numerous multinational corporations have driven numerous Forex spectators to characterize SEK as a safe haven currency.

SEK and Negative Interest Rates

In July 2009, Sweden turned into the main country to explore different avenues regarding [negative interest rates](/negative-interest-rate-strategy nirp) when the Swedish Central Bank brought the target interest rate down to 0.25%. This brought about the deposit rate falling to - 0.2%

At first, the SEK reinforced; pundits saw it as a positive that Sweden was taking a strong initiative to address the economy in the midst of the Great Recession of 2007 to 2009.

Be that as it may, throughout the next few years, the Swedish economy fumbled, and, in 2014, the Riksbank dropped the target rate to zero. Right now, the deposit rate fell 25 extra basis points (to - 0.50%). This brought about a drawn out period of weakness in the krona — in the a year following the shift, the krona fell by over 25% against the U.S. dollar.

From 2016 to 2018 the target rate was dropped to - 0.5. In late 2018, the target rate was changed to - 0.25.

Connections of the SEK

The SEK is strongly correlated with its Scandinavian counterparts, the Danish krone (DKK) and the Norwegian krone (NOK). The accompanying chart shows the SEK/USD, DKK/USD, and NOK/USD on one chart; they will quite often move together, however at certain times one might be stronger than the others.

Swedish Krona Coins and Bills

As of now, there are one, two, five, and 10 kronor (plural) coins in circulation. In terms of bills, there are 20, 50, 100, 200, 500, and 1,000 kronor bills.

The E-krona is a digital currency controlled by the Riksbank. It is exchanged through the Swish app. The E-krona hasn't officially been adopted on the grounds that cash is still being used in the country. Nonetheless, later on, conceivable cash payments will be killed out and out.

Illustration of Exchange Rate Conversion Using the Swedish Krona

Accept that the SEK/USD exchange rate is 0.1250. That means it costs $0.1250 to buy one krona. To find the number of kronor it takes to buy one U.S. dollar, partition one by the exchange rate: 1/0.1250 = 8. It takes eight kronor to buy one USD. This is the rate for the USD/SEK currency pair; notice how the currencies have flipped position.

On the off chance that the SEK/USD rate climbs to 0.1425, the SEK has increased in value relative to the USD, and the USD has diminished in value relative to the krona. It presently costs more USD to buy one krona.

On the off chance that the rate tumbles to 0.10, the SEK has diminished in value relative to the USD. It currently costs less USD to buy one SEK.

Swedish Currency FAQs

What Is the Swedish Currency?

The Swedish currency is the Swedish krona.

Which Countries Have Krona Currency?

Krona is the official currency of Sweden. Krona in a real sense means "crown" in Swedish. Different countries additionally have currencies that are called "crown." In Norway, the currency unit is known as the krone. In the Czech Republic, the currency unit is called the koruna. In their separate languages, both of these words can be translated as "crown."

Does Sweden Still Use Krona?

The Swedish krona is the official currency of Sweden.

How to Redeem Old Swedish Krona Currency?

The Riksbank (the Central Bank of Sweden) offers an application interaction for the redemption of all invalid Swedish banknotes, no matter what their age.

Sek Currency Belongs to Which Country?

SEK is the currency code for the Swedish krona, the official currency for the country of Sweden.

Is Swedish Krona Pegged to Another Currency?

Since harvest time 1992, the exchange rate for the Swedish krona has been floating.

In 1939, a couple of days before the beginning of WWII, Sweden pegged the krona to the U.S. dollar.

What Does Swedish Krona Resemble?

Features

• The Swedish krona is the official currency of Sweden.
• While Sweden is expected to take on the euro eventually, there is little direness as the Swedish population isn't agreeable to switching currencies.
• The Swedish krona supplanted the riksdaler riksmynt at par in 1873, when the Scandinavian Monetary Union was shaped.
• The e-krona is a digital variant of the krona, utilized by means of an app, and is expected to phase out the utilization of cash.
• The currency code for the krona is SEK, and the truncation is kr.